Former Cleveland Catholic Charities controller admits to embezzling $2 million

CLEVELAND, Ohio -- A former controller and business manager for Cleveland Catholic Charities pleaded guilty Thursday to embezzling more than $2 million from the organization and could face more than five years in federal prison.

Michelle Medrick, 58, of North Royalton, admitted to one count of bank fraud. She was employed at Catholic Charities for 26 years and stole the money between 2008 and last year. Catholic Charities fired Medrick after discovering the theft.

She faces a likely sentence of between 33 months and 63 months in federal prison under a plea agreement. The sentencing judge sentencing will have discretion on whether to consider several factors, such as whether he feels she abused a position of trust when stealing the money.

U.S. District Judge Christopher Boyko will sentence her April 27. He is expected to order Medrick to return the money she stole as restitution, though Catholic Charities is insured for theft and said it was reimbursed for the majority of the stolen money.

Medrick is free on bond. As a condition of her release, she is not allowed to pursue any jobs where she would be a bookkeeper or in accounting.

Flanked by defense attorney James McDonnell during Thursday's hearing, she answered all the questions Magistrate Judge Thomas Parker asked of her during her plea hearing.

As Parker read aloud the details of her scheme, she agreed that she committed those crimes.

Medrick was responsible for managing accounts for Parmadale, a family services facility Catholic Charities runs in Parma.

When she received checks from client-agencies to pay Catholic Charities for outstanding invoices, as well as donations, she put the money into Parmadale's bank account, instead of in the Catholic Charities main account, according to charging documents.

Medrick then wrote checks payable to "cash" and used the money for herself. She altered checks and documents to conceal her embezzlement. On some occasions, she told bank tellers that she was the chief financial officer of Catholic Charities and that she needed to withdraw cash from the Parmadale account to pay for food for the facility, charging documents state.

In all, she admitted to writing 1,449 checks payable to "cash" from Catholic Charities' money.

The money for invoices came from several counties and state organizations. The donor money came from the Cleveland Automobile Club Organ's Outing Fund, the United Way of Greater Lorain County and other groups, the charging documents state.

Charging documents do not say on what Medrick spent the money.

McDonnell described Medrick after the hearing as "a woman who has absolutely no record, who has expressed her remorse and is ready to accept her consequences."

Catholic Charities president and CEO Patrick Gareau said in a statement Thursday that the organization was grateful for the government's work in bringing a case against Medrick.

"We have taken numerous corrective and preventative actions in response to the criminal behavior of this former employee, including a thorough internal review of procedures at all locations, a forensic audit by an independent firm, converted the process for receiving payment for services to electronic deposit wherever possible, and enhanced our computer systems," Gareau said in his statement. "Catholic Charities remains dedicated to its mission of serving the most vulnerable among us in Northeast Ohio."